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Indices Technical Forecast: Bullish
- S & P 500 breaking out of channel/bull-flag pattern
- Dow Jones snapped range to the top-side
- Nasdaq 100 carved out higher-low above support
S & P 500 Technical Forecast
The S & P 500 broke out of a bullish pattern on Thursday when it crossed the top-side trend-line running down off the highs. This could send the SPX back to the record highs in short order, with 4545 needing to get crossed to notch a new all-time high.
It would take a drop back below 4329 to turn the outlook neutral to bearish, at this time looking like a lower probability scenario. For now, the trading bias in the near-term is bullish with small dips and consolidation patterns viewed as potential opportunities to enter along the path of least resistance.
S & P 500 Daily Chart
S & P 500 Chart by Tradingview
Dow Jones Technical Forecast
The Dow Jones is breaking out of a range it has been stuck in for nearly a month. The breakout has the record high at 35631 in focus. To flip the picture back downward a decline into the range is needed, with a close below 34800 to really confirm this scenario.
Advertisement Dow Jones Daily Chart
Dow Jones Chart by Tradingview
Nasdaq 100 Technical Forecast
The Nasdaq 100 has a very similar look to it as the S & P 500, with it crossing above the trend-line running off the record high. It has some work to do to get back to a new record, with 15356 as the next level to contend with.
After that the record high at 15701 will come into focus. To turn the outlook bearish in the near-term the low at 14636 would need to be broken, but it wouldn't be long after that that the September 2020 slope would get tested and could put in a floor. A situation we will worry about later should it become relevant.
Nasdaq 100 Daily Chart
Nasdaq 100 Chart by Tradingview
Resources for Forex Traders
Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment , quarterly trading forecasts , analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex .
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at@PaulRobinsonFX
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